Description

Graco’s $586 Million Revenue Record: Is Wall Street Missing the Bigger Growth Story?

Graco Inc. reported third-quarter fiscal 2026 results reflecting steady business performance alongside ongoing strategic initiatives. The company achieved record revenue of $586 million, up 8% year-over-year, with 4% organic growth supported by contributions across all three segments and geographic regions. Order activity improved, with organic incoming orders increasing 7% in the quarter and backlog rising 18% year-to-date, providing better visibility heading into the fourth quarter. The recent acquisition of Valco Melton expanded Graco’s capabilities in precision adhesive dispensing and quality assurance, with management targeting EBITDA margin expansion from the high teens to mid-20% range over three years. Segment-wise, the Contractor segment delivered 5% sales growth, driven by demand in professional paint and commercial construction despite mixed performance in the home center channel.